Denver Real Estate Market Stats: November 2023

Denver Real Estate Cools Over the Holidays 

There was a 28.93% drop in all new inventory between October and November as the Denver real estate market slowed for the Thanksgiving holiday and winter in general. Both pending and closed sales were also down month-over-month, while days on the market ticked up.

So, market conditions are pretty normal for this time of year. 

Taking a closer look at the November data for detached, single-family homes, the market remains strong overall while simply experiencing seasonal slowing. New listings coming on the market decreased by 27.71% compared to October yet increased by 2.1% compared to the same period last year. Pending sales also decreased 8.74% month-over-month and increased by 3.73% year-over-year. 

However, closed sales are down 15.72% compared to October and 14.38% year-over-year. Days on the market also remained in the double digits (up by six versus last month) as buyers took their time to find the right home and the right deal.

Along with a drop in new listings for November, active listings still available for sale at the close of the month decreased to 4,743 properties, down 10.32% month-over-month and only slightly higher than 2022. It goes to show that if interest rates come down in 2024, the continued lack of inventory could create more competition among buyers.

So, what's going on with the median home price? With activity slowing, prices came down from $645,000 in October to $625,000 in November. Year-over-year, that's up ever so slightly, just 1.63% but still moving in the right direction for homeowners looking to gain equity. 

Along with price negotiations, seller concessions are a big component of transactions these days. Here's what Libby Levinson-Katzs, Chair of the DMAR Market Trends Committee, has to say about buyers requesting them and sellers using this option to incentivize buyers:

"The opportunity for buyers continues as we look at the close-price-to-list price ratio—which can be a bit deceiving. This number continues to hold strong at 98.56 percent; however, we do not track concessions in this report (the DMAR Market Trends Report). What we know in the industry, but don't publish here, is that sellers are currently negotiating significant amounts towards lender buy-downs to help buyers ride the wave of high interest rates while keeping the price fairly static."

The bottom line? As a seller, you need a seasoned professional agent to guide you through pricing and negotiating concessions if needed. If you're a buyer, now is the time to not only shop around but work with an agent who will advocate on your behalf and put together a deal that makes sense for your needs as well as your budget. 

How to Assess a Home Before Making an Offer

Buying a home is a significant investment, which is why you want to make sure that you’re making an informed decision. While your PorchLight agent will help you hire a reputable home inspector once you’re under contract, feel free to do a little sleuthing on your own.

Take pictures, videos and notes. Bring a flashlight and measuring tape. And most importantly, be prepared to look at a property objectively. It's easy to get swept up in the vibe of a home, one that feels right and you could see yourself living in. And while that's incredibly important, you should also walk away from a showing with a good idea of how the home functions and if it will meet your day-to-day needs. 

So here are (more than) a few things to check out on your own. Feel free to ask the hosting agent for clarification about anything you find. 

Assess the Home from the Curb

• How's the parking situation? Will it affect your ability to park or have visitors?
• Is the neighborhood well maintained? Noisy? Lots of kids? How's the road noise?
• Does the house, the windows, and the chimney look straight, level and square?
• Are the gutters in good shape? Do the downspouts divert water away from the house?
• Does the landscape slope away from the foundation? Is it well maintained?
• Are there any cracks, stains or damage to the driveway? What about the roof and siding?
• Is the garage door in good condition? Does it sit flat and even when closed?

Inspect All the Interior Details

• Is there any staining on the walls, floors or ceiling that might indicate water damage?
• Are there any offputting or musty smells? Are candles or other room deodorizers being used?
• What’s the condition and consistency of the flooring throughout? Any creaks or squeaks?
• Is there old wallpaper a bad paint job, signs of replastering or drywall repair/replacement?
• Do the floors feel level? Do doors or windows stick when opening or closing them?
• Any drafts around the windows or doors? Do certain rooms feel colder/warmer than others?
• Check under sinks with a flashlight. Do you see stains or signs of water damage?
• Flush toilets and turn on faucets, is the water pressure strong and even (no sputtering)? 
• Is the water heater less than 12 years old? (Anything over 10 years is pushing max life)
• How old is the HVAC system and has it been serviced regularly? When was it last cleaned?
• Use your measuring tape—will your sectional couch, king-size bed and giant TV fit?
• Is there enough storage? An entry closet for coats and shoes? A pantry? A linen closet? Mudroom? 

Take a Look Around the Backyard

• If there’s a patio, is it covered and is the cover in good shape? Any cracks, sinking or damage?
• If there’s a deck, is there damage? Are the boards soft or spongy? Are railings and steps secure?
• Again, does the landscape slope away from the foundation? Is it well maintained?
• Is there an irrigation/sprinkler system? Is it working properly? Has it been blown for winter?
• Is there water pooling anywhere that it shouldn’t be?
• Are there any mature trees near the foundation or trees with branches touching the roof?
• Is the fence in good shape or is it leaning? Is there water damage at the base from snow buildup?
• Does the electrical box have old fuses (round colored knobs) or circuit breakers (rows of switches)?

If you have any concerns but still want to move forward, that’s great! Along with a general inspection, your agent can bring in pros to complete a sewer scope, radon testing, mold testing, chimney or foundation inspection, even inspections for lead paint and asbestos.

Once any issues are uncovered, you can then decide to walk away or renegotiate. That might mean having the homeowner perform repairs before you get keys, or requesting concessions that will give you the funds to handle repairs before/after moving in. Your PorchLight agent will explain the options, put together the paperwork, and then negotiate on your behalf.